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The CARES Act (2020 Stimulus Program)

The CARES Act Summary

There are a lot of rumors and misinformation surrounding our health and financial security. We hope you are relying on trusted individuals and trustworthy news outlets to make the important decisions that will guide you through these turbulent times. Now that the massive financial support bill has been passed Congress, we would like to summarize the items that might pertain directly to you so that you can act appropriately. 

Please feel free to contact us anytime for guidance and support or to answer any questions you might have. Rest assured that we and our staff are working diligently on your behalf every day.

Stimulus Money

  • How Much Could I Receive?
    • Single - $1,200
      • If you make under $75k AGI on latest tax return (line 8b)
      • If you make between $75k and $99k you will receive a smaller check
      • If you make more than $99k you will not receive a check
    • Married - $2,400
      • If you make under $150k AGI on latest tax return (line 8b)
      • If you make between $150k and $198k you will receive a smaller check
      • If you make more than $198k you will not receive a check
    • Head of Household - $1,200
      • If you make under $112,500 AGI on latest tax return (line 8b)
      • If you make between $112,500 and $136,500 you will receive a smaller check
      • If you make more than $136,500 you will not receive a check
    • Plus an additional $500 per child under age 17
    • Stimulus Check Calculator
    • If you have not already filed for 2019, your 2018 tax return will be used to determine your qualifications.
  • When?
    • Treasury Secretary, Steven Mnuchin, said he expected most people to get their payments within three weeks, but it could be longer.
  • How will I receive it?
    • The checks will be sent via direct deposit if you’ve already provided the IRS with your bank account information. If you received a refund this year deposited directly into your account, you’re all set.
    • If the IRS doesn’t have your direct deposit info, you will get a check in the mail.

Required Minimum Distributions (RMDs)

  • RMDs can be waived for this year (2020)
    • This includes Inherited IRAs as well
  • If you do not need the money, we recommend skipping this years RMD. Why pay the tax when you don’t have to?
  • If you would like to waive your remaining RMD withdrawal(s) for 2020, please contact us.

Tax Deadline

  • The deadline to file your 2019 taxes has been pushed back to 7/15/2020.

IRA Contribution Deadline

  • The contribution deadline for 2019 IRA and Roth IRA contributions has been pushed back to 7/15/2020 as well.
  • If you would like to make a 2019 IRA or Roth IRA contribution, please let us know.

Student Loan Payments

  • If you have Direct loans (not FFEL or Private) you get $0 a month payments and 0% interest until September 30, 2020.
    • This will happen automatically.
    • The best part is these $0 payments count towards the loan forgiveness programs.
  • If you have FFEL loans please contact Steve.

Charity Contributions

  • Beginning with 2020 tax returns, taxpayers will be able to claim up to $300 in cash contributions to charity as a deduction without itemizing.

Enhanced Unemployment Benefits

  • The new bill would wrap in far more workers than are usually eligible for unemployment benefits, including self-employed people and part-time workers.
  • Under the plan, eligible workers would get an extra $600 per week on top of their state benefit. 


Resources


None of the information in this document should be considered as tax advice. You should discuss any legal, tax or financial matters with the appropriate professional.